EU, US to cooperate on critical raw materials

The EU and the US will start negotiations on an agreement to allow critical minerals extracted or processed in the EU to benefit from the US Inflation Reduction Act (IRA).

The agreement will be aimed at enabling critical minerals from the EU to count toward requirements for clean vehicles in the Section 30D clean vehicle tax credit of the IRA, it was announced in a joint statement after EU president Ursula von der Leyen met with US president Joe Biden on Friday.

The US and the EU plan to strengthen their cooperation on diversifying critical mineral and battery supply chains.

The parties discussed the IRA, to which the EU responded with its Green Deal Industrial Plan.

The US and the European Commission are also starting a transparency dialogue regarding the incentives provided to the clean-tech industry. The Clean Energy Incentives Dialogue will coordinate their “respective incentive programs so that they are mutually reinforcing.”

“For us is important on both sides of the Atlantic to know what kind of incentives are being given to the clean-tech industry to make sure that we join forces to boost the clean-tech industry,” said von der Leyen.

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